Should you buy an Aetna Medicare supplement plan? Did you already buy a Medigap policy from Aetna? Was it the right choice or a mistake?
Aetna is a good company with a long history of providing health insurance for individuals, families and employer groups. But the Aetna Medicare supplement plans are relatively new.
The Medicare supplement policies are actually underwritten, managed and issued by Continental Life, a small carrier in Brentwood, TN. As a fully owned subsidiary of Aetna, the company has access to the financial resources of a large, national insurer.
Aetna Medicare supplement policies were first offered in Georgia in March, 2012. Shortly after buying Continental, Aetna reduced Medigap rates by 28%!
This can be a mixed blessing.
If you bought an Aetna Medigap plan in 2012 you probably got a decent rate. If you are under age 78 or so, it might not be the BEST rate, but you got an OK rate.
All Medigap plans with the same letter (F, G, N, etc.) are identical in every way except premium. Most people will compare rates and buy the lowest premium they found.
If you were only shown Aetna rates, or Aetna and a few others like Blue Cross or Mutual of Omaha, you may feel like you got a good deal.
But did you know Aetna pays a higher commission than Blue Cross? Was this the motivation for pushing Aetna or was the agent really looking out for your best interest?
Your initial rates are guaranteed for 12 months, but your health is not.
What will happen on renewal? Will rates climb 28% to their former level?
We may get an idea about where the Aetna Medicare supplement rates will go in 2013 in a few more weeks. I expect Aetna will release 2013 rates by the end of February.
What if Aetna does like Mutual of Omaha and increases rates by 15 – 20%? What can you do?
Some of you will be able to switch to another plan while you are still healthy. Georgia Medicare Plans has a carrier with an 11 year history of offering competitive initial and renewal Medigap rates. In 2011 they increased rates only 9%, followed by 6% in 2012. Their new business and renewal rates for their most popular plan will increase by only 6% in 2013.
Their 2013 rates are still competitive with Aetna and more than 25% less than where the Aetna rates were in February, 2012.
Think about that.
You may still be able to purchase a Medigap policy with rates that are 25% less than what you would have paid for an Aetna Medicare supplement plan in early 2012.
Give us a call and make a change before your health changes. We want to help.